Is Health Insurance Expensive?
Jason Stolz CLTC, CRPC
Is health insurance expensive? It can be—especially when you’re paying full price for ACA major medical coverage. For many families, self-employed individuals, or those between jobs, the monthly cost of traditional plans can feel overwhelming. Fortunately, short term health insurance offers a smart, affordable alternative that bridges coverage gaps without sacrificing essential protection. At Diversified Insurance Brokers, we help you compare both major medical and short term health options so you can balance cost, coverage, and flexibility.
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Get a Short Term QuoteWhy Major Medical Insurance Has Become So Costly
ACA (Affordable Care Act) plans are comprehensive, but that completeness comes with a high price tag. They cover ten essential health benefits, including preventive care, maternity, and mental health, but if you don’t qualify for subsidies, the premiums can exceed $500–$800 per month for an individual—or more than $1,200 for families. Deductibles often run $6,000 or higher, meaning you pay most routine costs out of pocket before coverage starts.
For many healthy individuals or families who rarely use their plan, that structure feels like overpaying for care they don’t use. That’s where short term health insurance steps in—with significantly lower monthly costs and customizable benefit periods.
How Short Term Health Insurance Works
Short term health insurance provides temporary coverage—typically from 30 days up to 12 months—to protect you from unexpected medical expenses between major coverage periods. These plans are ideal if you:
- Are between jobs or waiting for new employer coverage to begin
- Missed the ACA open enrollment period
- Are self-employed and prefer a lower-cost alternative
- Need proof of coverage for college, travel, or temporary residency
- Want to bridge to Medicare or another long-term plan
Short term policies cover doctor visits, ER care, hospital stays, and surgery for new illnesses or injuries. You can choose deductibles and maximum benefit levels that match your risk comfort and budget.
Cost Comparison: Major Medical vs. Short Term Plans
| Feature | ACA Major Medical | Short Term Health |
|---|---|---|
| Average Monthly Premium | $500–$800 (individual) | $80–$250 (individual) |
| Deductible Range | $5,000–$9,000+ | $1,000–$10,000 (selectable) |
| Network Choice | Often limited to regional networks | Broad PPO networks available |
| Coverage Term | Annual (12 months) | 1–12 months (renewable) |
| Covers Pre-Existing Conditions | Yes | No (new conditions only) |
| Enrollment Period | Open enrollment or qualifying event only | Enroll anytime year-round |
Who Short Term Insurance Works Best For
Short term coverage isn’t right for everyone—but it’s an excellent fit for many healthy individuals who want protection without breaking their budget. It’s ideal for:
- Young adults and families seeking lower premiums
- Self-employed individuals without group plan access
- Early retirees bridging to Medicare
- Job changers waiting for new employer benefits
- Healthy individuals who prefer paying less upfront for unexpected events
If you fall into one of these categories, a short term plan could be a cost-effective safety net while maintaining flexibility to upgrade later.
Ways to Keep Health Coverage Affordable
- Compare short term rates from multiple insurers before enrolling.
- Choose a higher deductible to reduce monthly cost—especially if you’re in good health.
- Bundle coverage with supplemental accident or hospital indemnity plans for extra protection.
- Reevaluate annually—you can switch back to major medical when your needs change.
Ensure You’re Getting the Best Rates and Coverage
At Diversified Insurance Brokers, we partner with top-rated carriers to compare short term, ACA, and alternative health options side-by-side. Whether you’re self-employed, transitioning between jobs, or need coverage fast, our licensed advisors help you balance cost and protection with no added fees.
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FAQs: Is Health Insurance Expensive?
Why is ACA major medical insurance so expensive?
ACA plans include ten essential benefits, no pre-existing exclusions, and capped out-of-pocket maximums, which raise base premiums—especially without subsidies.
How much cheaper is short term health insurance?
Short term coverage can cost up to 60–70% less than ACA plans, depending on deductible, benefit limits, and optional riders.
Can I enroll in short term health insurance anytime?
Yes. Unlike ACA coverage, short term insurance is available year-round and starts as soon as the next day after approval.
Does short term insurance cover pre-existing conditions?
No, short term plans cover new illnesses and injuries that arise after coverage begins. They’re not designed for chronic conditions.
Can I cancel or change short term plans?
Yes. You can cancel anytime or reapply for another short term plan to extend coverage until you’re ready for a permanent policy.
Who should avoid short term plans?
Those with ongoing medical conditions, expensive prescriptions, or maternity needs are often better suited for ACA major medical coverage.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
